Structuring Deal
I'm new to the foreclosure game. I have recently contacted someone in foreclosure and plan on meeting with them this weekend. Particulars are as follows; Couple owes about $9K in back taxes. They have a first mortgage where the balance is $34K. Second mortgage on an equity line. They say they owe $6K. The house was appraised for $160K. My question is, what is the best way to structure this deal. Do I want to pay off all the debt, pay off the mortgages and give them say $10-15K to walk away and turn around and try to sell the place or is there a way to keep them in the house which is what they really want. Any advice would be appreciated. Thank you in advance.
Something sounds fishy with this deal. IF they owe only $34K on a 1st and $6K on a 2nd on a property that's valued at $160K, then why can't they just refinance to a new loan? I mean, a $40K loan is only 25% of the appraisal. Just about anybody would finance that.
Roger
Maybe they owe $134K??? That would make more sense. Z
if you can check the recorder of deeds online, search what the name of both mortgagees and ask them to sign an authorization to release info for the lenders (1st and 2nd). find out exactly what they owe. then proceed with your deal, if there is one there.
if it's as you said, get them to sign over the deed while you pursue the financing. if you can, then by all means, record the deed, pay off the back monies and do with it as you wish - carry the note for them and foreclose quick when they default and you have a nice profit. OR give them some walking money and ask them to leave pleasantly and try to help them locate another place to reside.